Arcutis Biotherapeutics, Inc. (NASDAQ: ARQT)

Sector: Healthcare Industry: Biotechnology CIK: 0001787306
P/B 23.25
P/E -82.91
P/S 11.56
Market Cap 3.68 Bn
ROIC (Qtr) -14.53
Div Yield % 0.00
Rev 1y % (Qtr) 121.69
Total Debt (Qtr) 113.77 Mn
Debt/Equity (Qtr) 0.72

About

Arcutis Biotherapeutics, Inc., with its ticker symbol ARQT, is a commercial-stage biopharmaceutical company operating in the dermatological industry. The company is focused on developing and commercializing treatments for dermatological diseases with high unmet medical needs. Arcutis Biotherapeutics' main business activities revolve around the identification of molecules against validated biological targets in dermatology, and the development and commercialization of best-in-class products based on those molecules that address significant unmet...

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Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 47.43M provide 47.43x coverage of short-term debt 1M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 355.60M provides 3.13x coverage of total debt 113.77M, indicating robust asset backing and low credit risk.
  • Short-term investments of 143.95M provide solid 1.55x coverage of other current liabilities 92.97M, indicating strong liquidity.
  • Cash reserves of 47.43M provide solid 131.74x coverage of other non-current liabilities 360000, indicating strong liquidity.
  • Short-term investments of 143.95M provide healthy 0.58x coverage of working capital 249.45M, indicating strong liquidity.

Cons

  • Operating cash flow of (32.56M) barely covers its investment activities of 38.80M, with a coverage ratio of -0.84, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 38.80M provide weak support for R&D spending of 71.08M, which is 0.55x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 143.95M significantly exceed cash reserves of 47.43M, which is 3.04x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (32.56M) shows concerning coverage of stock compensation expenses of 39.70M, with a -0.82 ratio indicating potential earnings quality issues.
  • High receivables of 115.12M relative to inventory of 22.42M (5.13 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 10.01 12.31
EV to Cash from Ops. -114.02 23.25
EV to Debt 32.63 738.44
EV to EBIT -129.49 -9.16
EV to EBITDA -110.56 6.95
EV to Free Cash Flow [EV/FCF] -111.67 21.90
EV to Market Cap 1.01 65.67
EV to Revenue 11.68 227.32
Price to Book Value [P/B] 23.25 22.34
Price to Earnings [P/E] -82.91 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage -1.96 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -360.40 -27.13
Cash and Equivalents Growth (1y) % -64.99 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 82.33 -46.93
EBITDA Growth (1y) % 81.33 -1.68
EBIT Growth (1y) % 82.71 -56.45
EBT Growth (1y) % 77.82 -12.70
EPS Growth (1y) % 78.92 -28.31
FCF Growth (1y) % 80.19 -31.90
Gross Profit Growth (1y) % 130.22 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.86 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.48 3.85
Current Ratio 3.50 7.27
Debt to Equity Ratio 0.72 0.40
Interest Cover Ratio -1.96 841.00
Times Interest Earned -1.96 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -7.50 -18,234.31
EBIT Margin % -9.02 -18,580.80
EBT Margin % -13.62 -19,488.74
Gross Margin % 90.00 -7.59
Net Profit Margin % -13.90 -19,439.22